Skip to main content

Three Key Items you should know about before Filing in 2022


Three key items from the IRS that you should consider when filing your taxes in 2022. 

1. Changes to the charitable contribution deduction

Taxpayers who don't itemize deductions may still qualify to take a deduction for charitable contributions made in 2021 to qualifying organizations. Married taxpayers filing jointly can deduct up to $600, and all other filers can deduct up to $300. 


2. Advance child tax credit payments

If you received the advance child tax credit payments in 2021, you will need to compare the amount of payments you received in 2021 with the amount of the child tax credit that you can properly claim.

If you received less than the amount for which you are eligible you can claim a credit for the remaining amount.

If you did not get the monthly advance payments in 2021 you can get a lump-sum payment by claiming the child tax credit when filing your  return. This includes families who don't normally need to file a return.

Note: In January 2022, the IRS will send Letter 6419 out to everyone who received the advance child tax credit payments. The form will have the total amount of advance child tax credit payments you received in 2021. You will most likely have to provide a copy of this form to your tax preparer and should keep also keep a copy for your records.  


3. Economic impact payments and claiming the recovery rebate credit

If you qualified for a third stimulus check but did not receive it, or if you did not receive the full amount, you may be eligible for the recovery rebate credit. Individuals who don't usually file a tax return will need to file to claim the credit.

You will need the amount of your third economic impact payment and any plus-up payments to calculate your correct 2021 recovery rebate.

Note: In early 2022, the IRS will send Letter 6475 that contains the total amount of the third economic impact payment and any plus-up payments received. You will most likely have to provide a copy of this form to your tax preparer and should keep also keep a copy for your records. 



More information available at: Get ready for taxes: Here’s what's new and what to consider when filing in 2022. https://go.usa.gov/xeFZF

Comments

Popular posts from this blog

Blurred Lines

Do you know what it's like to lay in someone's arms and feel completely empty? To have their body wrapped around yours, naked, skin touching, breathe on your neck, arms holding you so tight it feels as if they were meant to never let you go. I lose myself in the forehead kisses and the brushing of my hair behind my ears. In the soft whispers and the morning smiles. I lose myself most of the time. But sometimes, I just lay there wrapped in his naked body wondering if he holds everyone like this. Wondering why I keep coming back. Knowing, that I'll come back again.  *Photo by cottonbro from Pexels

Nine Easy to use Apps for Small Cash Advances

Photo by Yan Krukov   Cash Advance apps offer people the ability to borrow small amounts of money in the form of cash advances. Some may have additional features, such as credit-building, saving and budgeting tools, and bank accounts. Most require a monthly membership fee and/or service fees that will be deducted from your account at the same time as your advance repayment. You will need to have a bank account with direct deposit from your employer in order to use these apps. Here is a list of nine, no hassle, Cash Advance apps you can use to get from pay check to pay check. Before I list them, I want to advise against using these apps unless it is an emergency. These should only be used every once in a while. If you are having problems getting from paycheck to paycheck, there is likely a bigger issue at hand. I recommend going over your income and expenses and watching your spending, or getting a second job. Click here for the budgeting app that I use and how it

Trust

Years ago, before I was ever married, I remember asking a friend about trust. She was already married and had been with her husband for a few years. I asked her, "How do you know you can trust him? How do you have faith in him to do the right thing? Don't you ever worry he'll cheat on you?" She told me that you don't put your faith in your husband. You have faith in God. If your husband is doing something wrong, you trust in God to make it right. That conversation has always stuck with me. The bible says, "Trust in the Lord with all your heart, and do not rely on your own understanding; think about Him in all your ways, and He will guide you on the right paths." (NKV Proverbs 3:5-6). I took her words, my Bible, and six weeks of marital counseling with our pastor into my marriage. Still, after only three months, my husband was having an affair. I felt sick. I felt stupid. I felt betrayed. I was angry, and everything they told me went null and void. When y